THE CHANCELLOR will today argue that spending cuts were the right policy and have helped get the UK back on the right track.
George Osborne faced criticism for his plan to reduce the budget deficit, and argues the latest economic figures vindicate his approach.
“The pace of fiscal consolidation has not changed, government spending cuts have continued as planned, and yet growth has accelerated and many of the leading economic indicators show activity rising faster than at any time since the 1990s,” he will say.
And Osborne hints more is to come, hinting at additional spending cuts in the pipeline for the Autum Statement and the next budget.
“The plan is working, but the recovery is still in its early stages, plenty of risks remain, and more years of hard decisions lie ahead,” he will say.
But Labour hit back, arguing the recovery is not a success as those at the top are reaping the benefits.
“With prices still rising faster than wages working people are on average £1500 a year worse off than in 2010,” said shadow financial secretary Chris Leslie.